Gattaca has powered through a challenging year as the specialist staffing solutions firm continued to battle a tough hiring market.
In a trading update to markets today, the firm, which is focused on engineering and technology, reported that it expects a five per cent dip in net fee income (NFI) “as anticipated”.
However, contract NFI was up three per cent due to a growth in contractors in the latter half of the year, which is a product of the firm’s main focus.
Group underlying profit before tax was anticipated to be £2.7m, up from its original guidance of £2.4m.
Permanent recruitment for the London-listed firm is down 19 per cent on a like-for-like basis.
Matthew Wragg, chief executive, said: “I am pleased with our trading performance, despite unhelpful hiring market conditions.
“In particular, the growth in our contractor base for the first time in eight years is satisfying, even more so when the total market is flat or slightly down, so a sign of us winning market share.”
Despite a sharp decline in permanent recruitment, Wragg said “we have seen this area stabilise and marginally grow” in the fourth quarter compared to earlier in the year.
Wragg added: “We have focused the business on the markets, geographies and services in which we are, or can be, the ‘go to’ recognised provider.
“We continue to see high engagement, attrition below long-term targets and improving productivity levels amongst our people. We will seek further opportunities for our market leading technology stack to support business growth, improved productivity, automation, and customer experience.”
Commenting on future plans, he added: “Recognising that trading conditions are expected to remain at around current levels, we will keep tight control on operating costs during 2025, whilst ensuring we remain well placed to build market share in our chosen sectors.”
The company remained cautiously optimistic, saying “with our growing momentum we expect to increase market share in our target sectors and are well positioned for both investment and further growth as market conditions improve.”
Whilst mindful of the macro-economic headwinds affecting the recruitment sector, the board believes it will meet market expectations for FY25.”